Project cash flow – not just profit – during start-up.

Berkonomics

Early stage investors who take a chance on new businesses, often now plan their investments around the notion – or hope – that they can fund one or two rounds to lead the business to profitability. Cash is everything to a new business. How many times do we have to say this?

Startups: What are your odds for success?

Berkonomics

Starting a company is HARD – in so many ways. I read several years ago, that the average startup restaurant lasts only about a year. Restaurant startups would not top my list. And this includes all businesses, not just startups. Way above market investment returns.

Financing a Start-Up

Tech Coast Venture Network

Virgina Lorimor There are several options for financing a start-up business that tend to follow a natural course in a business’ development: Personal Investment. This is where all entrepreneurs have to start. “OC’s Premier Incubator – Supporting Start-Up Businesses in Our Business Collective&#. Tags: Funding General financing funding startup

Austin Start-up MailLift Joins 500 Startups

Tech Zulu Event

I met fellow hustler Brian Curliss about 2 years ago at a Startup Weekend event that I was covering. It came as no surprise whatsoever when I found out that his new company MailLift was called up to the big leagues to join the 500 Startups accelerator.

The best advice startups will never follow

Berkonomics

Some relatives believe that a family bond is an insurance policy, and that all investments or notes will always be repaid, no matter what the circumstance. Consider whether the family member being asked to invest has the capacity to walk away “happily” from a lost cause.

After 20 years: Updating the Berkus Method of valuation

Berkonomics

There is a universal truth: fewer than one in a thousand start-ups meet or exceed their projected revenues in the periods planned. I should have done more about this subtle interpretation when first seeing this, and will attempt to make up for that now. Well, it had to happen.

The Berkus Method: Valuing an Early Stage Investment.

Berkonomics

For those of us who’ve invested in early stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point. Starting up Raising money

Invest 250

Wearable World Labs Partners With Technicolor to Accelerate Wearable Tech & IOT Start­ups

Tech Zulu Event

This partnership will bring one of the most influential media companies together with today’s most promising emerging startups in the Wearable Technology and Internet of Things (IOT) space.

Are MBAs Necessary for Start-ups or VC?

Both Sides of the Table

This is part of my ongoing series called “ Start-up Lessons.&#. I came across this blog post about getting a computer science degree as the best degree for getting into venture capital or working at a VC-backed start up. Like Chris Dixon I grew up programing.

Consider all resources before seeking investment.

Berkonomics

First, few startups can use that much money today with all of the virtual services available and increasingly inexpensive methods of development, prototyping and marketing. Second, almost no professional investor will consider putting that much into a startup until there is proof of market demand, product viability or some other mitigation of failure. Starting up Raising money

Ad Analytics Start-Up EDO Raises $12 Million

L.A. Business Journal

1 that it raised $12 million in its first round of outside investment Entertainment Data Oracle Inc., or EDO, a company that uses data collection and analysis to measure the effectiveness of TV ads, announced Nov.

Oracle 109

3 Things You Need To Remember To Get Your Tech Start Up Moving

Tech Zulu Event

Working at your company but want to break off to start your own? Please don’t get discouraged by these difficulties, starting a business is always hard, but it can be one of the most rewarding things you ever do.

Who Should you Hire at a Startup?

Both Sides of the Table

This is part of my ongoing posts on Startup Advice. There are people who tell startups that they should hire the most senior people that they can find. Bringing in a senior person who’s “done it all before&# is often a mistake in a startup.

Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. It starts as a debt instrument (e.g. And it adds up.

Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

This is part of my ongoing series on Startup Advice. As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting.

Should Your Startup Have an Advisory Board?

Both Sides of the Table

This is part of my ongoing series Startup Advice. Many startup companies hire advisory boards. If you plan to set one up – no problem. come out of the gate strong and never let up) then you might get some attention. So you set up advisory meetings.

The Fallacy of Channels: Startups Beware

Both Sides of the Table

This is part of my ongoing series on startup advice but also filed under my sales & marketing posts. No advice I give will ever apply to 100% of companies, 100% of startups or even 100% of tech startups. So Should I Avoid Channels at all Costs When I’m a Startup?

Startup Founders Should Flip Burgers

Both Sides of the Table

This is part of my ongoing series Startup Advice. When you’re an early-stage startup that hasn’t raised any institutional money you end up doing almost every job function of the company yourself. We had to ramp up our team quickly and ramp we did.

People Management: Startup Teams Should Dip but not Skip

Both Sides of the Table

We all like to think of startups as “non hierarchic&# organizations and to some extent that should be true. I see two common mistakes in companies (not just in startups, in fact). Let information flow up but direct your staff and execute through hierarchy.

Include your labor value in your plan.

Berkonomics

Investors love it when entrepreneurs draw little or no money from their startups. You could start by charging more for your executive salary, then paying out less in cash, accruing the rest into a payable amount due to the entrepreneur. Starting up

How to Work with Lawyers at a Startup

Both Sides of the Table

If you’re a startup and you don’t have a close relationship with a few law firms you’re really missing one of the most important relationships that any entrepreneur can have. Many people start companies arse backwards.

Don’t get hung up on valuation.

Berkonomics

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up premoney valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road.

Bonfire Ventures closes $60 million to invest in SoCal B2B startups

TechCrunch LA

Los Angeles is becoming one of the more interesting destinations for startups and the investors that provide money for venture capital firms to place bets on young companies are increasingly starting to take notice.

SoCal 282

Calacanis Starts Up New Venture Fund

socalTECH

Not only is he running his own technology conference, Launch, he''s also making angel investments, and opening up his own coworking space , he''s also created a new venture capital fund, the Launch Fund. conference launch investment jason capital venture calacanis

2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

It is also a result of pent-up demand. Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue.

Investing in AI

SoCal Tech Calendar

The themes for CES 2019 will include autonomous vehicles, smart cities, the work place of the future, and other disruptive offerings developed in research labs on the UCLA campus, in startups, as well as in large global organizations. Thursday, January 17, 2019 -- CES 2019 at UCLA Anderson. Technology has become an integral part of our lives, changing our lives and work, the opportunities for new ventures and established enterprises, and more broadly society.

Invest 100

I Want My CIC! … The Benefits for Startups to Be Co-Located

Both Sides of the Table

I recently wrote a blog post about why I believe that startup teams in close proximity perform better. I guess I shouldn’t be surprised – I got a similar lukewarm reaction when we started Launchpad LA and that seems to be going pretty well.

Calibrate Ventures Raises $80M Investment Fund

socalTECH

According to the newly created venture capital firm, it will focus on early revenue startups, focused on companies across both the consumer and enterprise sectors. The firm said it is targeting initial investment of $5 million in companies generating revenue between $1 million and $5 million, and already has made investments in five companies, including Alpha, Broadly, Built Robotics, Embodied, and Soft Robotics.

Bonfire Ventures closes $60 million to invest in SoCal B2B startups

TechCrunch LA

Los Angeles is becoming one of the more interesting destinations for startups and the investors that provide money for venture capital firms to place bets on young companies are increasingly starting to take notice.

SoCal 225

73.6% of all Statistics are Made Up

Both Sides of the Table

of all statistics are made up. Here’s how I learned my lesson: I started my life as a consultant. I had to read each report, synthesis it and then come up with our best estimate of the markets going forward. How to Interpret Analyst Reports.

Why @UpfrontVC invested in Disruptive Rental Car Startup @Skurt

Both Sides of the Table

I have never met a person who loved their rental car company or the experience of turning up at an airport, waiting in line, paying a huge fee and then dealing with returns, airport shuttle buses and so forth not to mention half-washed and smelly cars. Surely the startup can do better.

Invest 386

My Interview on This Week in Startups with Jason Calacanis

Both Sides of the Table

Last Friday I was on This Week in Startups with Jason Calacanis. Why did the VC investment pace slow down so much? - Tags: Start-up Advice Lots of great discussions here. Ok, I know it’s an hour-long video, but if you have time in the evening, we had a series of great discussions once you get 6 minutes in or so past the upfront advertisements. Topics include: - Should you raise money at a high price and then just spend it slowly? - Is the VC model broken? -

Don’t be a Grin Fucker

Both Sides of the Table

I grew up in the US but lived in England for so long I can never remember from which country my slang comes. But then I started to see it happening internally. So we (and by we I mean “they&# ) at Accenture decided to come up with our own bull shit. All startups are hard.

Preccelerator Program Targets $25K Investments In Startups

socalTECH

Los Angeles-based, early stage startup accelerator The Precellerator Program , which is associated with legal firm Stubbs Alderton & Markiles, LLP, says this morning that it will start investing $25,000 in unrestricted cash in the startups which join its program, in addition to the $25,000 in legal services it already provides to participants. The move is the first for the program to providing cash investments in startups. invested in those firms.

Invest 109

Building Products for Mass Adoption

Both Sides of the Table

Quite honestly I see way too many company pitches that are designed for Techies but I only want to invest in products designed for Normals. They read the press releases of competitors or see them at a trade show and race to keep up with their feature sets.